CBRXXX10.1177/0886368720912604Compensation & Benefits ReviewSchweyer et al. editorial9126042020

Introduction

Compensation & Benefits Review 2020, Vol. 52(2) 31­–33 Time Versus Money and © 2020 SAGE Publications Article reuse guidelines: sagepub.com/journals-permissions the DOI:https://doi.org/10.1177/0886368720912604 10.1177/0886368720912604 journals.sagepub.com/home/cbr

Allan Schweyer, Incentive Research Foundation, Ashley Whillans, Harvard Business School, and Phillip Bryant, Columbus State University

The exploration of dual-income households in American that earn less than about this issue of Compensation & Benefits Review $26,000 per year (classified as “the working is a fascinating and important one. As Lynne poor”).1 For these families to achieve a mid- Bryant points out in her article, “Bringing dle-class lifestyle, dual incomes may not be Home the Bacon,” two thirds of couples with enough. Indeed, millions of Americans work children under 18 are in dual-income house- two full-time , as may their partner. In holds, as are many couples without kids. In these triple- or even quadruple-income homes the article “One Size Fits All,” the authors there is, sadly, no choice but to take up any point out that 89% of women who cohabitate employment offered—even if full-time (married or otherwise) are in dual-income employment of both partners does not cover households. Moreover, a substantial percent- childcare costs—in hopes of finding more age of dual-income couples work for a com- lucrative work in the future. bined 100 hours or more each week. This may In “Bringing Home the Bacon”—another leave little room for a rich and social article in this issue—author Lynne Bryant dis- life or to address unexpected, yet inevitable cusses choice from her own perspective as a life events that invariably require time to middle-to-upper-middle-class careerist through resolve (illness, childbirth or otherwise). the course of her working life. As Bryant points These are facts, but they must be assessed out, the dual-/single-income choice is rarely a in the proper context. The overriding context static one; it changes due to planned and is choice. First is the question of whether unplanned life events. However, Bryant also dual-income households have any realistic provides stark contrast to the choices facing option of reducing their hours and/or becom- America’s poorest, namely, that as a career pro- ing single-income households. In our view, fessional she has choices. For example, the the average American family ought to be able opportunity to stay at home with kids for sev- to raise a family of four in a middle-class life- eral years and the chance to pursue her profes- style on one income. After all, the ability to sion at other times, all the while having a raise a family and have time to enjoy the expe- (mostly) full-time employed partner, were rience lies at the heart of the American Dream. choices that she was able to deliberately make. In this issue, Tesa Leonce, author of “The Making career decisions that enable time (vs. Inevitable Rise in Dual-Income Households money) during critical life transitions can and the Intertemporal Effects on Labor reduce stress and promote greater happiness. Markets,” points out that low-wage earners As one of the authors has pointed out in may earn too little to support their families in their work elsewhere,2 those who choose time a middle-class lifestyle. No doubt, wage stag- nation and price inflation have, in part, made Corresponding Author: dual incomes a necessity for many American Phillip Bryant, Columbus State University, Columbus, families. The U.S. Bureau of Labor Statistics GA 31907, USA. reports that as of 2017 there are 3.9 million Email: [email protected] 32 Compensation & Benefits Review 52(2) over money, including those who use some of an average credit rating. Add property taxes, their money to buy back time (housekeeping utilities and insurance, and the family incurs services, for example), tend to increase their housing costs of about $1,250 per month. happiness and life satisfaction levels. But for The U.S. Department of Agriculture esti- better or worse, among Americans who have a mates median food costs for a family of four real choice between single- or dual-income at between $146 and $289 per week. Assuming lifestyles, most people value money. Perhaps $1,000 per month for food, the family’s more fairly, they value the things that come monthly costs rise to $2,250. According to the with careers and longer hours over the things Kaiser Family Foundation, the average U.S. that come with less emphasis on work/career family whose employer provides health insur- and more free time. We believe these are, for ance still spends $500 per month on out-of- the most part, rational and thoughtful choices. pocket health care. This brings the total to However, it is critical to acknowledge that $2,750. An economic choice of a car, plus gas despite the inflation and relatively stagnant and insurance, adds another $500 per month, incomes that many dual career families are bringing the family to $3,250 per month. This faced with, most white-collar families can leaves $1,000 per month for clothing, enter- choose time over money if they wish. They tainment, savings and perhaps life insurance. have the option of becoming single-income The Pew Research Center defines the mid- families (one full-time career, two part-time dle class as those who earn between 67% and careers, etc.) if they are willing to live accord- 200% of the median household income ingly. As we pointed out in our call for papers ($62,000/year). This means that at the lower for this issue, many people (and couples) end of the middle-class range (about $41,500), choose jobs and careers with long hours for the families probably have no realistic choice. To status and prestige they confer. Others, espe- achieve a middle-class lifestyle they require cially those who may see their work as a call- dual incomes. At the median, however, mid- ing, discount the time they spend at work dle-class families (the average) clearly have a because there is nothing they would more pre- choice. Family vacations might mean long fer doing, and some may have ambitious career drives and campsites, but if the average goals or other motivators, but they have a American wants more time and is willing to choice. Thus, an open question is how to make sacrifices and relocate for work if neces- encourage such choices and help these deci- sary, they can choose the single-earner sions (and their resulting leisure time) feel option—even while owning their own home in legitimate. How do we legitimize time? a safe neighborhood with good public schools. The contrast between the , Moreover, their income level would qualify Bryant’s experiences in the middle class and them for college loans and grants for their chil- the preferences of dual-career high-earning dren. Yes, the American Dream (indeed, an professionals means any discussion of dual- even loftier one than was conceived in 1931 by income families has to acknowledge the con- James Adams) is still attainable by the average tinuum on which choice exists. American (so long as that dream is not inflated According to the Census Bureau, median to include two cars, vacations abroad and din- household income in the United States stands ing out several times a week).3 at just over $62,000 per year. A family of four, The article “One Size Fits All,” authored by with deductions, will keep about $51,000 William Martin, acknowledges that the major- after state and federal taxes or about $4,250 ity of employees—either by choice or by per month. According to the latest Zillow necessity—will be part of a dual-income data, the average U.S. home costs $200,000 as household at least once in their lives. of 2019. Assuming a couple can save $20,000 Accordingly, employers should ask themselves for a down payment, that house will cost $851 what they can do to make life easier for those per month with a 30-year mortgage at the pre- on the dual-income path and to make recruiting vailing rate of 3.9% for a person with and retention easier for themselves. As Martin Schweyer et al. 33 argues, dual-income couples and families Funding require different benefits and more flexibility The authors received no financial support for the in the benefits they select. research, authorship, and/or publication of this In his article, Martin makes an important article. point about “total rewards,” and the fact that the experience of work goes well beyond sal- Notes ary, bonuses, vacation days, free food and 1. U.S. Bureau of Labor Statistics (2017). health benefits. Experiences of work include 2. Whillans, A., Macchia, L., & Dunn, E. (2019). work design, learning and development oppor- Valuing time over money predicts happiness tunities, flexible work options, an inclusive after a major life transition: A preregistered culture of mutual respect and support, the free- longitudinal study of graduating students. dom and autonomy to oversee one’s own work, Science Advances, 5(9), eaax2615. https://doi. purpose and meaning, career paths, coaching org/10.1126/sciadv.aax2615 and the list goes on. Elements of the total 3. Adams, J. T. (1931). The epics of America. rewards of work appeal to different people dif- Simon. ferently; and—as was explained by Lynne Bryant—to the same people at different stages Author Biographies of their career. Indeed, one size does not fit all. Authors Reynoso and Verduzzo, in their Allan Schweyer is the chief academic advisor for article titled “Duplicating the Number of the Incentive Research Foundation where he con- ducts research into workplace motivation and the Income Earners in Mexico Does Not Reduce application of incentives, rewards and recognition. Inequity,” provide evidence from 35 years of He is a well-known author and speaker on topics of empirical data that the rise in dual-income human capital , including employee families has not reduced inequality measures engagement, behavioral economics in the work- in Mexico. And we round out this issue with a place and HR technologies. He is the cofounder of review of Elizabeth Warren’s and Amelia the Human Capital Institute and current president Warren Tyagi’s 2003 book, The Two Income of TMLU, an online learning . Trap, which highlights that even with the rise Ashley Whillans obtained her PhD in social psy- in dual-income families, the incidents of chology at the University of British Columbia. bankruptcies and financial difficulties in Currently, she is an assistant in the America are also on the rise. Negotiation, Organizations & Markets Unit at the Virtually every working adult who reads Harvard Business School, teaching the Negotiations journals like Compensation & Benefits Review course to MBA students. Broadly she studies how falls into the category of a person who has a people navigate trade-offs between time and choice between time and money. Fortunately, money. Her ongoing research investigates whether for employers, most people seem inclined and how intangible incentives, such as experiential toward money. But that sentiment can easily and time-saving rewards, affect employee motiva- tion and well-being. She is also interested in under- shift. Wise employers will consider and cater standing how best to leverage online marketplaces to the total rewards needs of dual-income to create positive social change. She consults for workers. Wise workers will consider the private and for-profit organizations. trade-offs necessary to buy more time, whether that means paying for more personal Phillip Bryant earned his PhD in business man- services or reducing work hours to achieve it. agement from the University of Memphis. An associate professor at Columbus State University’s Turner College of Business, he is cofounder and Declaration of Conflicting Interests associate editor of Servant Leadership: Theory & The authors declared no potential conflicts of inter- Practice. He is also on the editorial board of The est with respect to the research, authorship, and/or American Business Review and serves as the edi- publication of this article. tor-in-chief for Compensation & Business Review.